National innovativeness is one key driver of economic development. The relation of national innovativeness and national culture has been firmly established by research. Cultural factors, however, influence national innovativeness via different mechanisms on the macro-, meso-, and micro-level of a country. In our article, we build on existing research on the link between cultural dimensions and national innovativeness to develop a new model that classifies different cultural dimensions in groups according to their mechanism: political, social, or individual (PSI-model). Using a newly established data set composed of world data, we test and find support for this model using a variety of regression models. The PSI-model provides a more structured theoretical background of the impact of different cultural dimensions on national innovativeness, especially with regard to social practices and social values. It can be used to generate policy recommendations on national innovativeness and offers further applications in fields related to the various impacts of national culture.

In the ongoing debate on the relation of cultural differences and national innovativeness this research aims to find out which of the seven cultural dimensions of The Culture Map (communicating, evaluating, leading, deciding, trusting, disagreeing, scheduling) have a significant influence on a nation’s ability and capacity to innovate. The findings show that cultural aspects as described by The Culture Map clearly influence the innovativeness of a nation. Based on these findings, tentative recommendations for fruitful monocultural and multicultural teams respectively are given.

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The links between innovativeness as a driver of economic performance, and the determinants of innovativeness have been investigated by management scholars and economists for decades, focusing mostly on “hard factors” as investment in research and development, or education. Focusing on a relatively neglected, but in times of globalization even more important aspect, the influence of cultural characteristics on innovativeness, we apply different econometric models to test for links between cultural tightness and looseness on the one hand, and national innovativeness on the other hand. We find that cultural tightness—in the sense of homogenous and intolerant societies—has a negative link to national innovativeness, while cultural looseness—in the sense of tolerant and diverse societies—displays a positive link to national innovativeness.